Commercial Real Estate Gap Loans
Commercial Real Estate Gap Loans
- * Developers or sponsors short on equity at closing
- * Borrowers refinancing projects with new appraisals
- * Investors restructuring their capital stack for new leverage
- * Senior loan approved but equity is not sufficient
- * Appraised value increased and additional leverage is viable
- * Project requires last-mile capital before completion or sale
- * Underwriting, valuation review, and capital structure mapping
- * Gap loan term sheet aligned with senior lender covenants
- * Placement with private credit funds or structured equity providers
Typical gap loan applications
| Scenario | Gap Loan Role | Tenor |
|---|---|---|
| Acquisition financing with incomplete equity | Bridge the shortfall between senior loan and buyer contribution | 6–18 months |
| Construction or redevelopment near completion | Top-up to complete works before refinancing or sale | 9–24 months |
| Revaluation creates new borrowing capacity | Extract additional capital ahead of refinance | 6–12 months |
Structuring and underwriting process
We review senior debt terms, appraisals, and equity contribution. A capital map identifies shortfalls and defines a structure that closes the gap efficiently.
We design loan or preferred equity terms aligned with lender covenants and asset cash flow. Indicative pricing and timeline are presented for approval.
We source investors or lenders that fit the project profile. This includes private credit funds, family offices, or preferred equity partners.
Execution includes legal coordination, intercreditor agreement, and escrow management. Post-closing, we track disbursement and repayment milestones.
Key parameters
From USD 2 million to USD 150 million. Facilities sized to appraised value and sponsor track record.
Combined loan-to-value up to 85%. Interest rates reflect senior terms, asset quality, and exit visibility.
6 to 24 months, with repayment from sale, refinance, or stabilised operations.
Request Commercial Real Estate Gap Financing Terms
Submit your project details, capital shortfall, and exit plan. Our team will prepare indicative terms from lenders and investors matched to your profile.
Submit Your DealFrequently Asked Questions
A gap loan covers the funding difference between senior financing and required capital at closing. It is short-term, secured, and repaid from sale or refinance.
Is gap financing debt or equity?It can be structured as mezzanine debt, preferred equity, or a hybrid instrument depending on leverage, collateral, and lender requirements.
Private credit funds, debt funds, and family offices specialising in transitional real estate lending provide gap financing on a secured, short-term basis.
How fast can funding be arranged?Indicative terms are usually available within one week of receiving project data. Closings occur in 10–25 business days depending on due diligence.
Financely acts as an arranger through regulated lenders, funds, and investors. All financing is subject to due diligence, KYC, credit approval, and executed documentation. Nothing herein constitutes a commitment to lend or invest.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
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Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
